Court to Restart Citgo Auction Process

The U.S. District Court in Delaware is set to restart the auction of shares in Citgo Petroleum's parent company, PDV Holding, to address $21.3 billion in claims against Venezuela and its state oil firm PDVSA. A court advisor, Robert Pincus, recognized that the auction process, which has been ongoing for over a year, has been chaotic and proposed a fresh start after a failed $7.3 billion bid by an affiliate of Elliott Investment Management lacked creditor support. Two potential bidders have expressed interest in re-entering the auction, which is scheduled to formally relaunch on December 18, 2023, with bids accepted for three months. Amber Energy, the affiliate that won the initial auction but never closed the deal, criticized the proposed terms as likely to create a chaotic atmosphere and negatively impact the purchase price. Pincus's plan includes reopening Citgo's financial data to bidders and aims for a final recommendation to be made by April 2024. This overhaul follows Judge Leonard Stark's guidance on revitalizing the auction process.